EDP Renewables to keep US as top investment market despite offshore wind exit
EDP Renewables’ Strategic Focus and Market Outlook
By Sergio Goncalves
Continued Investment Commitment in the U.S.
LISBON, May 6 (Reuters) - Portugal's EDP Renewables will keep the U.S. as its largest investment market despite exiting offshore wind there, its chief executive told Reuters on Wednesday.
The world's fourth‑largest wind power producer is sticking with its planned 4.5-billion-euro ($5.3 billion) investment in the U.S. over the next three years, announced in November, which accounts for about 60% of its total spending through 2028.
Offshore Wind Exit and Market Implications
EDPR said in April that Ocean Winds, its 50-50 offshore wind joint venture with France's Engie, had agreed with U.S. authorities to scrap two early-stage projects off New York and California, raising doubts about its commitment to the market.
Focus on Solar and Battery Energy Storage
"The U.S. is our main market. While we're exiting offshore wind projects there, it clearly remains a core market and the biggest driver of growth," Miguel Stilwell de Andrade said, adding that "the big bet in the U.S. will be on solar and battery energy storage".
Global Operations and Growth
EDPR, which operates in 28 countries across Europe, Asia and the Americas, increased installed capacity by 2 gigawatts in the 12 months to March, with more than half of the growth in North America, lifting total capacity to 20.5 GW.
Ocean Winds Joint Venture
Stilwell de Andrade said EDPR was "very comfortable" with Ocean Winds and that the group intends to keep its stake.
Financial Performance
EDPR earlier on Wednesday reported a forecast-beating rise in first-quarter recurring net profit.
Policy and Regulatory Environment
Windfall Taxes Lack Rationale
WINDFALL TAXES LACK RATIONALE
Stilwell de Andrade said plans by Portugal and Spain to impose windfall taxes on electricity producers "make no sense", arguing generators are not benefiting from higher natural gas prices driven by the Iran war.
Electricity Prices and Profitability
With renewables dominating Iberian power generation, final electricity prices are largely set by these sources rather than gas-fired plants and are "not generating excess profits", he said.
Recommendations for European Energy Policy
Governments should focus on boosting Europe's competitiveness and energy independence by promoting electrification and investment in power grids and renewables, he added.
($1 = 0.8551 euros)
(Reporting by Sergio Goncalves. Editing by David Latona and Mark Potter)
